The Government's Plan for Brexit

Debate between Jim Cunningham and Geraint Davies

Wednesday 7th December 2016 Commons Chamber

[Geraint Davies]

Clearly they have come to the Government and said, “The only reason we’re in this country is to platform into the EU market, and if we face tariffs we want the money back or we’re going to move,” and the Government have given them the money. I know the right hon. Gentleman knows nothing about economics and just criticises the Bank of England, but that is the simple business case.

As for the ridiculous arguments the right hon. Gentleman and his colleagues put about on trade, what he wants to do is turn his back on 46% of our trade and somehow dream we can make up those relationships, which were always weaker than the EU negotiating new bilaterals. That is fantasy land.

[Mr Jim Cunningham]

Will my hon. Friend give way?

[Geraint Davies]

I will not.

I do not think that people voted for Brexit—

Transatlantic Trade and Investment Partnership

Debate between Jim Cunningham and Geraint Davies

Thursday 10th December 2015 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op)]

I beg to move,

That this House believes that the Transatlantic Trade and Investment Partnership, the Comprehensive European Trade Agreement, the Trade in Services Agreement and any associated investor-state dispute settlement provisions should be subject to full parliamentary scrutiny in the UK and European parliaments.

I am amazed that the Leader of the House, who is just leaving the Chamber, has described opposition to the Transatlantic Trade and Investment Partnership—TTIP—as a political campaign by left-wing pressure groups. I do not think that the Chair of the European Scrutiny Committee, the hon. Member for Stone (Sir William Cash), or the Chair of the Environmental Audit Committee, my hon. Friend the Member for Ogmore (Huw Irranca-Davies), fall into that category. They, along with members of the Business, Innovation and Skills Committee and many other Committees, are interested in this matter for a variety of reasons. I am pleased that Members from all parties across the House have taken an active interest in this vital issue. I note that the Leader of the House has now left in ignorance, but that is as we would expect.

When I spoke on this subject a year ago, I talked about arbitration problems and big companies focusing on suing democratically elected Governments over laws that might undermine their future profits. Today, in the context of the COP 21 talks in Paris, I want to make the key point to the Minister for Small Business, Industry and Enterprise that unless the environmental imperatives coming out of Paris are integrated, in a binding and legally enforceable way, into the EU free trade agreements with Canada and the United States, we will be in danger of sleepwalking into environmental oblivion, irrespective of what comes out of the talks.

[Mr Jim Cunningham (Coventry South) (Lab)]

It is right that this motion should come before the House today. Going back to my hon. Friend’s comment about the Leader of the House, how can we trust the Government with industrial relations when we have their anti-trade union Bill going through the House? This should be scrutinised on the Floor of the House, as should the effects on public services, given the presence of American predators who could take advantage of the new arrangements.

[Geraint Davies]

Yes, that is a key point. I have here a copy of the draft trade and sustainable development chapter of TTIP, and I hope that the Minister has read it. I know that a number of her fellow Ministers have not. It contains references to rights under labour laws, but they would not be legally enforceable. I would like them to be enforceable, because workers’ rights are at risk of erosion as a result of these deals.

I want to make it clear that I am in favour of trade, of growing trade and of the European Union. I do not want any confusion about that. The trade between the EU and the United States is already worth in excess of $700 billion, as the Minister will know. The forecasts of the amount by which the economies will grow vary from nothing to about 4%. Let us remember that the forecast for the expansion of economic activity as a result of the single market varied between 4% and 6.5%, but it ended up being 2%. Companies such as Moody’s are saying that it will amount to the equivalent of a cup of coffee per person per day. If you like coffee, perhaps that is worth having, but we need to think about the benefits of trade versus the costs and risks involved.

Transatlantic Trade and Investment Partnership

Debate between Jim Cunningham and Geraint Davies

Thursday 15th January 2015 Commons Chamber

[Geraint Davies]

That is very important indeed. I agree with my right hon. Friend. The thorn in the rose is the investor-state dispute settlement—the ISDS. As has been mentioned, this is an opportunity for deals to be struck behind closed doors to empower multinational companies, within a new system of law outside the law with which we govern ourselves, to sue democratically elected Governments for passing laws that protect people.

[Mr Jim Cunningham (Coventry South) (Lab)]

Following on from the point made by my right hon. Friend the Member for Knowsley (Mr Howarth) about public services, is there not another issue we have to careful about: the erosion of employment rights?

[Geraint Davies]

My hon. Friend is completely right. There are people who say there is no risk from ISDS, but there is a lot of evidence and a track record of multinationals using the powers at their disposal to extract money where laws are passed undermining future profit flows. Philip Morris is the obvious example: it is suing Uruguay and Australia for something like $100 million. Lone Pine is suing the Canadian Government for about $250 million, because Quebec wants a moratorium on fracking. Achmea, the Dutch insurer, is suing the Slovakian Government who tried to reverse some of their health privatisations. Argentina has paid more than $1 billion to US and EU energy giants, because it froze energy and water prices. If these powers are available, they will be used to fleece the taxpayer. In my view, they are unnecessary. I accept that some protection may be needed between developed economies and democracies and rogue states, but rogue states are certainly not the United States. Mature democracies and economies, namely the EU and the US, do not need anything more than contract law to protect investors.